Bangladesh Matches India’s Per Capita GDP

In 2011, India’s per capita nominal GDP was nearly double (173%) of the per capita GDP of Bangladesh but now Bangladesh has caught up with India’s per capita nominal GDP. India’s purchasing power parity (PPP) GDP per capita of $6,284 is still above Bangladesh’s $5,139.

Economists Shoumitro Chatterjee, Pennsylvania State University and Arvind Subramanian, Ashoka University point out that India seem to have missed $140 billion per year in low skill manufacturing opportunities.

Bangladesh, China and Vietnam have capitalized on manufacturing exports. However, it would be tough to export from the poor inland areas of India.

The other near term opportunity is for India to improve its farming and agricultural sectors.

SOURCES- Foreign Policy, IMF, Ashoka
Written by Brian Wang,

14 thoughts on “Bangladesh Matches India’s Per Capita GDP”

  1. Bangladesh is a river delta which make rails hard but makes barges easy. I also believe in canals and barges for moving bulk cargo.

  2. I wander how much damage was done by removing from cash circulation two of the most commonly used notes a few years ago.

  3. But according to Mindbreaker's link, Bangladesh has very little rail. Less than Zimbabwe.
    So how do you suggest that rail is how Bangladesh has moved ahead of India?

  4. India had a substantial about of rail mileage before independence. Since independence they have not spent enough on its upkeep and expansion.
    Railroads may not be sexy but have a great return on investments. Lately, with the growth in the Indian economy there seem to be more spending on infrastructure by the government so I am hoping some of it will be spent on the railroads.

  5. China is scared of India because their system in the long run is more progressive more market oriented and their fertility rate is much healthier. India has a healthy and vibrant Hi Tech sector. So in the long run it has a potential to outmatch China as a world superpower!

  6. LoL! The data is from IMF and posted in many news media. You are here long enough to know Brian is never shy of jabbing at China too.
    But t hurt much? China has no fear of a country less than a quarter of her economy and incapable of making its own high tech defence weapons. There’s a bigger power that China is watching.

  7. Looks like a steady progression for Bangladesh and just change in the inclination over the last year. While an obvious stumble for India over the same period.

  8. Its a combination of Bangladesh holding on to a path of growth and India getting caught in nationalism. Pakistan's per capita used to much higher than India's till the 80s and then it came under increasing Islamic and military influence and lost its course for a few decades. India is repeating Pakistan's mistake by having a strong man leader and returning to ancient "knowledge".

  9. Fascinating. In the past, there's been some tension surrounding illegal immigration from Bangladesh. I wonder if the improved economic conditions will end that. Or if Bangladesh continues to outperform, maybe the concerns will switch around the other way.

  10. Well done to Bangladesh. Theres those places in the world, like Bangladesh, Etheopia and Vietnam that were complete basket cases when I was a child in the 80s but they've managed to get their act together and become quite respectable. And theres other, like South Africa, Russia and (cough, cough) the US that only seem to go backwards.

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